2012 i nvestor conference · •modern and fashion forward ... • includes bridal gowns,...
TRANSCRIPT
2012 INVESTOR CONFERENCE
March 14th, 2012
CENTURY CITY, CALIFORNIA
20122012 INVESTOR CONFERENCE
Walter Parks
Chief Operating Officer
20122012 INVESTOR CONFERENCE
Today’s Agenda
2:00 – 2:05 Walter Parks, Chief Operating Officer
2:05 – 2:15 Manny Mashouf, Chief Executive Officer
2:15 – 2:35 Emilia Fabricant, President, bebe stores, inc.
2:35 – 3:00 Renee Bell, EVP Merchandising, bebe
3:00 – 3:30 Linda Vilaikeo, President, 2b bebe
3:30 – 4:00 Question & Answer Session
20122012 INVESTOR CONFERENCE
Safe Harbor Statement
Any remarks that we make today about future expectations, plans, and
prospects for bebe stores, inc. which are not historical facts, are forward-
looking statements that involve risks and uncertainties. For a discussion
of such risks and uncertainties, which could cause the Company’s actual
results to differ from those contained in the forward-looking statements,
please read the section entitled “Risk Factors” in the Company’s most
recent Form 10-K and Form 10-Q, each on file with the Securities and
Exchange Commission.
20122012 INVESTOR CONFERENCE
Manny Mashouf
Chief Executive Officer
20122012 INVESTOR CONFERENCE
: The Philosophy
TIMELESS
•An ATTITUDE, not an age
•A MINDSET, not a stereotype
SHE IS
•Sexy AND Feminine
•Modern AND Fashion Forward
•Sophisticated AND Playful
20122012 INVESTOR CONFERENCE
: The Portfolio
Two Brands Rooted in a Common Aspiration
• Domestic productivity improvement
• Closure of underperforming stores
• Improve gross margin
• Design, Quality, and Speed to Market
• E-commerce and International Growth
• Domestic store growth potential
• Target returns similar to bebe brand
• Ecommerce and Marketing
• Fashion authority at a value message
• Incremental classification opportunities
Sexy, Sophisticated, Modern, Affordable Luxury Fun, Flirty, Aspirational, Everyday Value
20122012 INVESTOR CONFERENCE
Increase Global Power of the bebe brand
• Entered 6 NEW countries in FYE 12 including Japan, Korea, and India
• Achieved 119 points of sale, or a +98% increase over LY
• Future expansion in China / East Asia, Western Europe, and South America
: The Portfolio
FYE 08 FYE 09 FYE 10 FYE 11 FYE 12 (P)
Southeast Asia 11 13 14 14 24
Middle East 8 12 19 22 59
Mexico / Central America 1 3 7 12 17
Eastern Europe 1 3 5 10 12
Northern Africa 1 3 2 2
East Asia 5
TOTAL 21 32 48 60 119
Y / Y Increase 52% 50% 25% 98%
Country Count 8 12 14 16 22
Cumulative International Store Count
20122012 INVESTOR CONFERENCE
Emilia Fabricant
President, Stores, Inc.
20122012 INVESTOR CONFERENCE
: Roadmap Objectives
DELIVER IMPROVED PROFITABILITY
• Design, Quality, and Speed to Market
• Recapture key categories
• Identify new opportunities
• 360 degree marketing approach
• E-commerce and International Growth
20122012 INVESTOR CONFERENCE
: Product
CORE STRENGTHS
• Exclusive Design
• Speed to Market
• Frequency and Assortment Turn
• Versatility and Lifestyle Range
• Affordable Luxury Positioning
20122012 INVESTOR CONFERENCE
: Product
GROWTH INITIATIVES
• Evolve “wear to work” assortment
• Recapture strength in tops
• Build accessories and shoe businesses
• Identify incremental lifestyle initiatives
20122012 INVESTOR CONFERENCE
: Product Launch- bebe bridal
• Launched on line at March 12th
• Available by appointment at four
bebe retail locations: Chicago/Oak
Street, Los Angeles/Rodeo Drive,
NYC/Soho & South Florida/Aventura
Mall
• Designed by Project Runway All Star
Rami Kashou in collaboration with
bebe’s design team
• Includes bridal gowns, bridesmaid
dresses plus wedding accessories
handbags, shoes and gifts
20122012 INVESTOR CONFERENCE
: Marketing
360 DEGREE APPROACH
• STRONG, CONSISTENT BRAND
PRESENTATION in-store & on-line
• EXPERIENCES that synchronize
product launches with events across multiple channels
• ENGAGEMENT through established
and new media, events, social
channels and loyalty rewards to
create long-term brand
commitment.
20122012 INVESTOR CONFERENCE
: Brand Growth Platforms
ECOMMERCE
• ALIGNED branding
• ENHANCED user experience that has improved conversion and spend
• CONTENT that keeps her coming back for more
• INTERNATIONAL
• GLOBAL BRAND consistency
• INDIVIDUALIZED PROGRAMS that
speak to country specific opportunities
• FOCUS on elevating brand
awareness and fashion authority
20122012 INVESTOR CONFERENCE
: Summer Marketing Campaign
20122012 INVESTOR CONFERENCE
Renee Bell
Executive Vice President, Merchandising
20122012 INVESTOR CONFERENCE
Summer Collection
20122012 INVESTOR CONFERENCE
Linda Vilaikeo
President, x
20122012 INVESTOR CONFERENCE
• Brand Philosophy
• Product Strategy
• Store Concepts
• 2bstores.com
• Marketing Strategy
: The Brand
20122012 INVESTOR CONFERENCE
Girls Just Wanna.. be Beautiful
20122012 INVESTOR CONFERENCE
• WOW Product
• Fun & Flirty
• Exclusive Designs
• WOW Pricing
• Inspired by H&M
• Bargainistas &
Recessionistas
• WOW Stores
• Touch of Vegas
•WOW Marketing
• Organic Approach
Objectives
20122012 INVESTOR CONFERENCE
• WOW Tops & Dresses
• Return of Woven Tops
• Grow Sweaters
• Exclusive Prints and
Color
• WOW Bottoms
• Exclusive Fits and
Detail
• WOW Shoes & Jewelry
• Expand Shoes
• Extend Accessories
WOW: Product Strategy
20122012 INVESTOR CONFERENCE
• Outlets:
• 18 stores
• 2b Merchandise + bebe
Logo + bebe Transfers
• Hybrid:
• 15 stores
• 2b Merchandise + bebe
Logo
• Both Outlets & Hybrid in
Outlet locations
WOW: Stores in Outlet Locations
20122012 INVESTOR CONFERENCE
• 2b stores in Retail Malls
• 9 stores and growing
• Exclusively 2b
Merchandise
• Opened in Fall
• Kings Plaza, NY
• Valencia, CA
• Del Amo, CA
• 3 New Spring Openings
WOW: Stores in Retail Malls
20122012 INVESTOR CONFERENCE
• Expand Mall based 2b Stores
• DRIVE profitable incremental
growth
• INCREASE market share from
existing fashion value
players
• ENTER Retail Malls OUTSIDE of
bebe’s real estate strategy
• TARGET:
• 4000+ square feet
• Lower Margins
• Lower SG&A
• Similar RETURNS as bebe
WOW: Growth Strategy
20122012 INVESTOR CONFERENCE
• 2bstores.com
• Launched 11/11/11
• Affordable Fun & Flirty
Fashion 24/7
• Meets growing demand for
2b in markets without brick
and mortar stores
• Despite small store base,
global visits show greater
brand interest
WOW: Growth Strategy
20122012 INVESTOR CONFERENCE
• One Vision, One Voice
• Organic Growth
• Direct Brand Engagement
• In-Store and On-line
• Social Media
Engagement
• Collaboration with
Local Bloggers
• Increasing focus on
social media
WOW: Marketing Approach
Levagabonddame.blog
spot.com
Lefashionmonster.com
20122012 INVESTOR CONFERENCE
• Increase Brand
Awareness with Value
Focused Editorial WINS
WOW: Marketing Approach
20122012 INVESTOR CONFERENCE
Spring Break..
Our Sweet Escape
20122012 INVESTOR CONFERENCE
20122012 INVESTOR CONFERENCE
Question & Answer Session